Chio revenue slips on 'chips tax'

Food

Revenue of snack maker Chio Magyarorszag, a unit of Netherlands-based Intersnack International, fell 5% to HUF 11.6bn in 2011 because of the introduction of a tax on unhealthy food introduced last September, managing director Robert Merkler said on Thursday.

The "chips tax" raised the prices of Chio products by 15-30%, Mr Merkler said.

The tax on Chio’s snack products rose from HUF 200 per kilogramme last year to HUF 250 from January 1, 2012.

Chio expects its output volume to edge down 1-1.5% this year, but sees exports lifting revenue by 3%.

Chio controls 22% of Hungary’s snack food market.

Per capita consumption of snack food in Hungary is just 2.7kg a year, under the 3.4kg EU average.

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Gastronomy